Germany Recognized Bitcoin As Legal Means Of Payment

The German Federal Ministry of Finances signed a decree recognizing bitcoin as legal payment. The document specifies that cryptocurrency enthusiasts will not tax purchases made for cryptocurrency.

The officials signed the decision on Tuesday, February 27, and it cites the decision of the European court of 2015, which determined bitcoin currency in terms of taxation and abolished value-added tax when buying goods and services using cryptocurrency.

The decision of the European Court allows for a divergence views concerning an essence and regulation of cryptocurrencies. Each country may have its own opinion as to what bitcoin is: currency or commodity.

Now Germany officially defines bitcoin currency. According to the Ministry of Finance resolution, cryptocurrencies become an equivalent legal means of payment.

Earlier this year the head of the Bundesbank, Joachim Wurmeling, stated that digital currencies like bitcoin must regulates by means of a set of the international rules, but not at the level of the separate nations.